How Sinar Mas is expanding its

EMPIRES OF
DESTRUCTION
Sinar Mas mining

Sinar Mas palm oil Sinar Mas pulp and paper

 NEW EVIDENCE
SINAR MAS -
RAINFOREST AND
PEATLAND DESTRU
CTION

25' 9.2" E
GPS: 1 36' 0.8" S/110
9 March 2010,
District,West-Kalimantan.
law. PT ALM, Ketapang
PT Agro Lestari Mandiri

according to Indonesian
converted to plantations
Location: Lat. S 1º 36’58.50” Long. E 110º23’40.40”
Date: March 14 2010
‘Sinar Mas has always striven to be

metres deep may not be

Peatland three or more
responsible and sensitive on ecological

Value area in PT ALM concession.

and environmental matters. All operating
For more information
contact:
enquiries@greenpeac
e.org
PUBLISHED IN APRIL

peat within the High Conservation

2010
by Greenpeace Internation
al
Ottho Heldringstraat
5
1066 AZ Amsterdam
The Netherlands

companies are committed to comply

Tel: +31 20 7182000
Fax: +31 20 7182002
JN 324

Cleared forests on deep

www.greenpeace.or
g

with all regulations on preservation of the

© Greenpeace/Ryo
Adna

environment around its operations. […]

Climate change is a phenomenon that all
businesses are facing everyday. All of our
operations follow the process of preservation
and regeneration of the environment as
an important aspect of its culture of
corporate sustainability.’
Sinar Mas Group website (2010) Group overview on sustainability
www.sinarmas.com/en/sustainability/#

‘WWF requests that the Sinar Mas Group

discloses the extent of its clearance of land
including peat areas for oil palm production
undertaken since November 2005 and
without prior HCV [High Conservation PT Agro Lestari Mandiri
Location: Lat. S 1°34’55.80” Long. E 110°30’25.79”
Value] assessment.’ Date: July 5 2010
WWF (2010) Press Release
In brief 1

How Sinar Mas is expanding empires of destruction

Trafigura’s lobbyists, Bell Pottinger, claimed
to be “appalled” by the report, saying it
was “premature”, “inaccurate”, “potentially
damaging”, “poorly researched”, and “deeply
flawed”.

Yesterday Greenpeace launched a legal action

in Amsterdam calling for the oil firm to be
prosecuted.
The firm acknowledges the impact of
Greenpeace’s campaign and the need to
publicly state its own case. ‘The company
realises it needs to change and is making
those changes,’ said Wynne-Morgan. ‘We
will support its attempts to tell people about
its real efforts in terms of sustainability…

Sinar Mas is notorious for its destruction of millions of hectares
1 11
of Indonesian rainforest, peatland and wildlife habitat. Two
divisions within the group lead the destruction: pulp and palm
2 3
oil. More recently, the group has diversified into coal.
Although Sinar Mas divisions regularly claim not to develop land
4
with high carbon stock such as peatland or primary forests, or
only to develop ‘least-valuable’ degraded forests and denuded
5 6
wasteland, Greenpeace and many other environmental and
7 17
social justice NGOs have exposed the devastating impact
8
of Sinar Mas operations in Sumatra, Kalimantan and Papua.
This includes destruction of carbon-rich peatlands and critical
9
wildlife habitat. Many responsible corporate consumers have
ceased to trade with Sinar Mas, considering the group a risk to
10
their brand.
In the face of market pressure, rather than change business
practice, Sinar Mas has hired PR companies Bell Pottinger.
12
They have also been working with Weber Shandwick. Bell
Pottinger is the same PR company hired by disgraced oil trader
13
Trafigura when it was caught exporting hazardous waste to
14
the Ivory Coast.
Sinar Mas is actively developing and expanding its landbank
for pulp plantations, oil palm and coal. Confidential Sinar
Mas documents obtained by Greenpeace reveal that Sinar
Mas has been targeting several million hectares of land
15
across Indonesia for pulp and oil palm expansion. In July
2010, Franky Widjaja, head of Sinar Mas’ oil palm division,
confirmed in an interview with the UK Sunday Times his
intention to develop a further 1.1 million hectares of oil palm
plantation. Analysis by Greenpeace of areas targeted by
Sinar Mas for oil palm development in Papua indicates that
these areas contain 50% primary forest cover and significant
16
areas of peatland.
Photographic documentation from field investigations and
aerial monitoring in July 2010 provides fresh evidence of Sinar
Mas’ continued active clearance of Indonesia’s remaining
rainforests and destruction of carbon-rich peatlands important
for climate and endangered wildlife habitat.
Expansion plans and evidence of the ongoing devastating
impact of current operations – despite recent changes in
company policies – again undermine Sinar Mas’ attempt to spin
itself a new reputation as a clean, transparent business.
2
SINAR MAS IS A SOURCE: GREENPEACE INTERNATIONAL (2010C)

WIDJAJA FAMILY SOURCE : EKA TJIP TA FOUNDA

TION (20 08)

EMPIRE D PAP ER
ANANADA, UK, AUSTRALIA, SINGAPO
RE
P ,C
MUKTAR WIDJAJA ULNA, USA

P
I ER
Since 1983, Mr. Muktar Widjaja PAP

ES TY
H
P& )

AGRI B PROPCHINA
,C
L
PU (APP

ER
R

S
IA
has been actively involved in the KTA

ES
A
MU SI

FOOD & AND

ON
JAJA (SON)
TE WID

N
management and operations of

)
IND

D& P
G DA

I
O O S (AF

E
N

US
GA

POR
the property, financial services,

UH
WID ANTO

E
H
A

GA

R TI

SINGA
GU
JAJ
agriculture, chemical and pulp and

ND

F
N
TE

PROPE
FUG

N KY O E S M A

A
)
A WI

A JA ( S O N

I
paper businesses.

AS
DJAJA
EKA TJIPTA WIDJAJA
(FOUNDER)

WIDJ

(G AR )
M U K JAJA

APORE
WID )

CES RI
SIN A STRY

FRA
(SO
FORE

OIL
LO GDG

TA

A
N
RM

SO DEN
R

SING
IN
FU

UR
FRANKY WIDJAJA

AS
GA

RE GOL
A
(G W ID J N T O

LM
I N D R AJA

ONE

AND
RA AJA
W ID J N)

INAG
FR ND

SI
A SO N) (SO
AN JAJ

PA
SIA
KYMr. Franky Widjaja
OES M A N WID
has extensive SI
NA S A)
MA MM

NE
MI R R
management and operational N IN M A S SIN TA S
A (

DO
G
L TIA R

IN
MU
experience. Since 1982, he has
CO E
NCIA
been involved with different
AL N A
FI ONE
IND
businesses, including pulp and ON S
ESIA
SOURCE: GAR 2010

IND
paper, property, chemical, financial
services and agriculture.

The Sinar Mas Group refers collectively to companies
operating across a diverse range of sectors, often operating
under a Sinar Mas brand.
What these have in common is control by the Widjaja
family, headed by Sinar Mas founder, Eka Tjipta Widjaja.
Sinar Mas divisions are typified by a lack of transparency
in both operations – for example, lack of publicly available
18
concession area maps – and corporate structure.
Businesses within Sinar Mas describe it as ‘one of the
world’s largest natural resource based companies with
19
operations in Indonesian archipelagos’. Sectors in which
Sinar Mas is actively expanding include pulp and paper,
palm oil production and coal.
Sinar Mas’ pulp division includes the Asia Pulp & Paper (APP)
20
group, Indonesia’s largest pulp and paper producer, and one
21
of the largest pulp and paper companies in the world. It
22
controls 30% of Indonesia’s current pulp capacity. Sinarmas
23
Forestry is APP’s ‘exclusive supplier’ of pulpwood.
Sinar Mas’ palm oil division Golden Agri Resources (GAR)
24
produces 10% of Indonesia’s palm oil. PT SMART is a subsidiary
of GAR, and now claims ‘SMART manages all oil palm plantations
25
of GAR’. GAR lists 125 subsidiaries, associate companies or
subsidiaries of subsidiaries, of which 53 are involved in ownership
26
and cultivation of oil palm plantations.
 ‘The Widjaja family […] controls the Indonesian 3
conglomerate Sinar Mas, which is active in many

How Sinar Mas is expanding empires of destruction

Purinusa
sectors including agribusiness, property and
2009 PT.

finance. […]
© Copyright reserved.
a. All rights
Ekapersad
n may be
this publicatio
No part of mitte d in any form
d or trans
reproduce d in any
s, or store

Building &
any mean e without
or by
m of any natur
retrieval syste , except for

E
n permission

Communit mpowering
prior writte of
deali ng in respect
fair
permitted reprograp
hic
ying and/or

The Widjaja family was very keen on using related

ocop is-
phot n for perm
ion. Applicatio rial
reproduct right mate

ies
use of copy
sion or other to reproduce
ission
including perm published works
cts in other . Full

parties for commercial transactions. This way

extra shers Ann uAL
e to the publi reP ort
shall be mad autho r, publisher En- 200 9
ent of
acknowledgem be given. vi-
e must
and sourc
its:

of doing business is known for allowing and

Photo Cred Indonesia
r W. Nowack.
APP and Pete

encouraging commercial contracts driven by

the interests of the ultimate owners, rather than
resulting from a normal market process.

Hundreds of companies have been created within

the Sinar Mas conglomerate, both to enhance
efficiency and to control sales prices between
related companies.

As a consequence, the ultimate owners were and

AsiA Foo
d & Pro
Listed on Perties
the Singapore
Exchange
Lim ited

still are in position to prioritize their own interests

and even capture profits for themselves. This
Jakarta, 22 July 2010 would be done to the detriment of investors in
the major listed companies when the share value
decreases; and to the detriment of creditors
Company Presenta
tion LETTER TO STAKEHOLDERS when loans are not repaid.’
Pirard, R and R Rokhim (2006)
2006
Greenpeace Letter

Dear Valued Stakeholders,

I would like to start by thanking you for your continued custom and support. As a valued stakeholder, ensurin
Jakarta, 22 July 2010

One of the sons of Sinar Mas Group founder Eka Tjipta Widjaja, thatWidjaja
registered company. Muktar we meet your
is also needs
the is always our top priority. We
President have recently become aware of a letter being sent
Jakarta, 22 July 2010 LETTER TO STAKEHOLDE
RS

Greenpeace Letter

our stakeholders by Greenpeace and other NGOs, which made false claims against APP and our sustainabil
Muktar Widjaja, has senior positions in APP/Sinarmas Forestry Commissioner of Sinarmas Forestry’s company PT Wirakarya Dear Valued Stakeholders,
you for your continued custom
and support. As a valued stakeholder,
ensuring

practices. The letter utilised and repeated standard Greenpeace information and data that is false, unverifie
sent to
I would like to start by thanking become aware of a letter being
our top priority. We have recently
that we meet your needs is always false claims against APP and
our sustainability
29 and other NGOs, which made

and GAR/SMART, as well other Sinar Mas divisions. Sakti (WKS), APP’s pulpwood supplier in Jambi province,
our stakeholders by Greenpeace false, unverified
information and data that is
and repeated standard Greenpeace to make misleading
practices. The letter utilised environmental NGOs continue
We are disappointed that many
and outdated in most cases. the record straight.

and outdated in most cases. We are disappointed that many environmental NGOs continue to make misleadin and we would like to set
accusations against APP

30
LETTER TO STAKEHOLDERS Despite the claims made in
the letter, Asia Pulp & Paper
(APP) is not a subsidiary of
Sinar Mas. APP is the
by APP’s production facilities
in Indonesia and

Sumatra.
to market products manufactured
umbrella brand name used
China.

accusations against APP and we would like to set the record straight.
in the world.
the largest pulp and paper companies
APP now represents one of China
From its humble beginnings, and stakeholders in Indonesia,
without the support of our customers but, to our
This couldn’t have been achieved agreement with our customers,
and around the world. It’s our
Greenpeace Letter
policy not to publicise our supply
have discontinued their paper
supply from APP

According to GAR’s 2009 Annual Report, Muktar Widjaja ‘has

years, only three APP customers
knowledge, over the past six are not relevant to pulp and 1
requirements, which
due to their FSC procurement
be noted that FSC implements
Indonesia. It should, however,
after 1994, regardless of
of Indonesian plantations developed
paper industry operations in
the majority
an Association Policy and excludes
naged and legal.
whether they are sustainably-ma
for economic
be a balance between the needs

been actively involved in the management and operations of Despite

Muktar Widjaja was appointed
President
the claims
made
of GAR in theHe
in 2000. letter, Asia Pulp & Paper (APP) is not a subsidiary of Sinar Mas. APP is th
31 Understanding that for sustainable
and social development and
regulate the development of
development there needs to
the environment, the government
their natural resources. Indonesian
plantations), agriculture and
of Indonesia (GOI) has formulated
land-use laws – for conservation,
other uses – explicitly state
laws to
forestry
that regulation must
(natural forest concessions and consideration is explicitly
2
environmental use and social welfare . This
development, including forestry

umbrella brand name used to market products manufactured by APP’s production facilities in Indonesia an
balance economic growth, in which production forest --
policy that determines areas
3
stated in its spatial planning
27
[Sinar Mas] … pulp and paper businesses’ since 1983. is a member of GAR’s Executive/Board Committee and Vice
activities can be established.
plantations – and other land-use

Dear Valued Stakeholders,

China. 32
A 2009 APP report states that Muktar Widjaja is the President President Commissioner of PT SMART. He serves on the
www.fsc.org
1
FSC Policies, Principles & Criteria

I would like to start by thanking you for your continued custom and s
2

3
Law No.24 of 1992 about Spatial
Use Management

Source: 1) Eksekutif DATA STRATEGIS

KEHUTANAN 2007, DEPARTEMEN
KEHUTANAN, Direktorat Jenderal
Bina Produksi
Menteri
Departemen Kehutanan; 3) Keputusan
Kehutanan Indonesia 2006, 2007,
28 33 Kehutanan (BPK) 2008; 2) Statistik

Commissioner of PT Purinusa Ekapersada, APP’s legally Board of Directors of several subsidiaries of beginnings,
GAR.
1984
Tata Guna Hutan Kesepakatan,

From its humble APP now represents onethat

of we
themeet your needs
largest pulp andis always our companies
paper top priority. Wein have
the recen
worl
Kehutanan tentang Penunjukkan
Kawasan Hutan dan Perairan; 4)

our stakeholders by Greenpeace and other NGOs, which made false

This couldn’t have been achieved without the support of our customers and stakeholders in Indonesia, Chin
practices. The letter utilised and repeated standard Greenpeace inf
and around the world. It’s our policy not to publicise and
ouroutdated
supplyinagreement
most cases. We with
are our customers,
disappointed but,environ
that many to o
knowledge, over the past six years, only three APP customers
accusationshave discontinued
against APP and we wouldtheirlike
paper
to setsupply from
the record AP
straight.
4
the sinar mas ‘master plan’

Sinar Mas is actively developing

and expanding its landbank for pulp
plantations, oil palm and coal. This
landbank includes rainforest, peatland
and wildlife habitat. Historically, Sinar
Mas operations have destroyed
considerable areas holding these
conservation values. Its future expansion
into rainforest areas and peatlands will
further contribute to habitat loss and
climate change.

Confidential APP/Sinarmas
Sinar Mas prospecting and project
planning maps obtained by Greenpeace
Forestry planning document to
detail millions of hectares in Sumatra, support Sinar Mas expansion
Kalimantan and Papua targeted by ambitions for concession area
the group for future pulp and oil palm
34
and pulp production
development. Within the areas targeted
by Sinar Mas in Papua, preliminary
analysis by Greenpeace shows
considerable overlap with primary forest
35
and peatland. For example, half of the
areas targeted for oil palm concessions
overlap primary forest as mapped by the
Indonesian Ministry of Forestry.

‘PT SMART’s expansion

programme is part of the
company long term master plan.’
’

Caliman and Dharsono, (2008)


PT. SMART
Location: Kuala Kuayan.
Date: July 24 2009
Sinar Mas is building a palm
oil empire through ‘the most
aggressive new planting
programme among the
plantation companies’
36
Franky Widjaja, head of GAR, states in a July
2010 interview with the Financial Times that
GAR has 430,000 hectares of planted oil palm
plantation, and it has been licensed to cultivate
an additional 100,000 hectares by national and
37
local government agencies. In an interview
with the UK Sunday Times, he confirmed the
division’s intentions to expand its empire by an
38
additional 1.1 million hectares.
In October 2008, PT Sinar Mas Agro
Resources and Technology (SMART) gave a
presentation to a Unilever-hosted meeting in
London. This states that SMART’s ‘expansion
programme is part of the company long term
39
master plan’.
The presentation states that SMART has
200,000hectares available for development
40
within existing concessions. The company
has a further 1.1 million hectares of ‘land
41
acquisition in progress’. Sinar Mas divisions
do not make maps publicly available indicating
the location of concessions. However, 2008
GAR presentations to investors state that the
200,000 hectares available for development
are in Kalimantan; of the areas in acquisition,
100,000 hectares are in Kalimantan and 1
million hectares are in Papua.
42
A May 2009 GAR presentation announces
that its new strategic priorities include
expanding its plantation area by
establishing a ‘long-term target … of
43
50,000 ha per annum.’ Expansion plans
include acquisition of ‘well-positioned
and high-quality oil palm estates and
44
landbanks’ in Indonesia. In addition, it is
‘exploring development prospects in other
45
countries’ including a potential investment
5
How Sinar Mas is expanding empires of destruction
of US$1.6 billion for 240,000 hectares of oil
palm plantation in Southeastern Liberia.
46
Prospecting and project planning maps
obtained by Greenpeace reveal areas targeted
by Sinar Mas for oil palm development in
Papua. Preliminary analysis by Greenpeace
shows considerable overlap with primary
47
forest and peatland. For example, half of
the areas targeted for oil palm concessions
overlap primary forest as mapped by the
Indonesian Ministry of Forestry.
6
Sinar Mas is pulping the
planet: landgrabbing for
future deforestation
In 2009, Aida Greenbury, APP’s Director of
Sustainability and Stakeholder Engagement,
stated that ‘APP Indonesian pulpwood
suppliers manage around 2.4 million hectares
48
of gross area’.
In July 2010, Greenpeace released a report
49
‘How Sinar Mas is pulping the planet’,
estimating that by the first quarter of 2010, the
area of Sinar Mas-controlled pulp concessions
had increased to 2.9 million hectares of
50
partially forested concessions, some in areas
51
of tiger habitat and carbon-rich peatlands.
Greenpeace investigations detailed in the
July 2010 report document how natural forest
clearance from recently acquired concessions
is being used to meet APP’s current fibre
supply needs.
The report reveals internal Sinar Mas
expansion plans and implementation as
presented in a confidential powerpoint
52
presentation, ‘Area Development Project’
– a project sponsored by Muktar Widjaja and
his brother, Teguh Ganda Widjaja, who heads
53
APP. In 2008, Pulp & Paper International
magazine rated Teguh Widjaja as the most
powerful man in the pulp and paper sector
54
worldwide.
The presentation was developed for an
internal 2007 organisational management
55
meeting, and forecasts a massive increase
in pulping capacity.
Following publication of the Greenpeace
report, in July 2010, Aida Greenbury issued
a statement ‘APP responds to Greenpeace’s
56
false accusations’. In this, she asserts:
‘Greenpeace’s claim of a ‘secret’ plan by APP
to increase – by up to 7 times – its current
57
pulping capacity, is totally false.’
Greenpeace’s report refers to a ‘confidential’
58
2007 powerpoint presentation. This is not
the only confidential Sinar Mas document
detailing ambitions to expand pulp production
59
dramatically. No public information on Sinar
Mas expansion ambitions is available.
While no timeline for pulp mill expansion is
given in the 2007 document, the forecast
expansion forms the basis for a government-
lobbying tool to gain access to considerable
new, partially forested concession areas
‘supporting mill license capacity’.
The 2007 presentation details where the
company plans to acquire new concession
areas between 2007 and 2009, and calculates
the forested area available for clearance in
the near term. It then maps nearly 3 million
hectares actively targeted by Sinar Mas for
acquisition, split almost equally between
areas in Sumatra, Kalimantan and Papua.
Some of these areas have subsequently been
licensed to Sinar Mas for pulp concession
60
development, and forest clearance begun.
Within the areas targeted by Sinar Mas for
pulp concession development, analysis by
Greenpeace shows considerable overlap with
61
forest and peatland.

Sumatra Kalimantan Papua

Indonesia
Kalimantan
indah kiat
Sumatra Papua pulp mill
expansion from 1.8 to
3.5m tonnes per year

proposed
pulp mills
8m tonnes per year
Sinar Mas pulp mill
Lontar Papyrus
Natural forest (2006) pulp mill
expansion from 0.8 to 4m
Sinar Mas pulpwood expansion targets

proposed
pulp mill
2m tonnes per year
100mi 100mi 100mi
200km 200km 200km

Sinar Mas is expanding into
dirty energy: ‘unstoppable
acquisition’ of coal mining
concessions and operations
Coal is one of the dirtiest forms of energy in the
world. Indonesia has seen a rapid expansion of
62
coal mining during the last decade.
Sinar Mas has joined the dash for coal, and is
rapidly expanding its coal mining operations.
Sinar Mas’ mining division is headed by Fuganto
63
Widjaja, a grandson of Eka Tjipta Widjaja.
In 2009, Sinar Mas’ intial expansion into coal
mining has been through PT Dian Swastatika
65
Sentosa (DSS). In December 2009, DSS was
listed on the Jakarta Stock Exchange in order
to raise funds of around $16 million for further
66
expansion. DSS now operates through
four coal mining and exploration companies
and holds a total of five mining licences in
Riau, Jambi, South Sumatra and South
67
Kalimantan, with estimated coal reserves
68
amounting to 160 million tonnes.
Some of the coal feeds the high energy
requirements of Sinar Mas’ pulp and paper
mills PT Indah Kiat (in Riau, Sumatra) and
69
PT Pabrik Kertas Tjiwi Kimia (on Java), and
Sinar Mas Mining’s website lists APP as a
70
principle customer.
7
How Sinar Mas is expanding empires of destruction
PT Borneo Indobara
Location: South Kalimantan
Date: July 24 2009
Sinar Mas aims to further expand in the
coal sector by ‘acquiring other mining
71
companies’. Executive Director of
Indonesian Mining Association, (IMA),
Priyo Soemarno, stated in an interview with
Investor Daily in May 2009: ‘I am sure Sinar
Mas could be one of the big 10 national
64
coal producers in the next few years. This is
reflected in its unstoppable acquisition. […]
The main reason is to guarantee the supply of
72
internal needs.
Hendriko Sinaga, head of Business
Development at one Sinar Mas mining
company, claimed in a May 2009 Investor
Daily interview: ‘Sinar Mas now needs more
than 10 million tons of coal per year to meet
electricity generation requirements in its paper
and pulp factories. These business groups will
continue to increase production capacity in
the future.’
73
PT Indah Kiat
Location: Riau
As with Sinar Mas pulp and forestry divisions,
the Energy and Mining division website
provides no comprehensive information on the
location of areas targeted, acquired or under
74
development.
8
WHAT IS THE IMPACT OF Sinar Mas documents and PR materials assert that within their

current DEVELOPMENT existing concession areas Sinar Mas protects areas important
for biodiversity and climate and respects the law, including

within existing sinar legally protected areas. APP asserts that its suppliers ‘only
develop least-valuable degraded forests and denuded [barren]
mas CONCESSION AREAS? 76
wasteland’; According to a letter sent by SMART to WWF
in March 2010, it has been GAR policy since November
2009 not to development high carbon lands, including
primary forest and peatlands regardless of depth, or High
77
Conservation Values (HCV).

PT Rimba Hutani Mas

Location: Lat. S 1°30’4.07” Long. E 103°14’0.31”
Date: July 4 2009
Against a background of climate change, biodiversity
loss and impacts on forest-dependent communities,
Greenpeace investigations contrast the reality of Sinar
Mas operations with its own corporate policies, those
of its corporate customers, and the national and global
imperative to cut greenhouse gas emissions and protect
biodiversity.

Greenpeace reports published 2008-2010 expose just how

far the reality of Sinar Mas operations in Sumatra, Kalimantan
and Papua have been from these policy assertions. Despite
Sinar Mas policy rhetoric, Sinar Mas operations continue
their active destruction of peatlands and critical wildlife
habitat, as recent Greenpeace investigations expose.

Our ecological values assessments and monitoring

methods are also used by governments, conservation
‘Since late November 2009, the Company has groups and even concessionaires including Sinar Mas.

decided and has given instructions to operational Within the context of Indonesia, independent assessment
is made challenging by a general lack of transparency
management on the ground to stop and avoid within government and corporations, including difficulty in
conversion of any peat lands regardless of the acquiring reliable concession planning or management data

depth, primary forests and HCV areas.’

75
and documentation; other deficiencies in data quality lead to
variables in the quality and precision of any mapping based
Daud Dharsono, President
Director at SMART, letter analysis. As a consequence, field investigations are a critical
to WWF, 30 March 2010 part of our work.

Methodology: risk mapping
and field investigations
Risk mapping (spatial analysis)
1. Map company operation: this means having
concession boundaries: Sinar Mas does
not make these publicly available, thereby
hampering public scrutiny of its operations.
Best available information from GAR, for
instance, is a list of companies owning or
managing palm oil concessions, without any
details on location or size being disclosed.
Locations of oil palm concessions and
processing facilities are indicated with dots
within geographical districts. Greenpeace
concession maps are compiled from a
variety of sources including the Ministry of
Forestry, the National Land Agency (BPN),
internal company documents, conservation
organisations and assessors for High
Conservation Value assessments such as
those required by the RSPO.
2. Map ecological values: using best available
spatial mapping data (Geographic
Information System, GIS) from the Ministry
of Forestry, Wetlands International, United
Nations Environment Program (UNEP),
expert conservation groups and other
authorities, GIS experts use these data layers
to create an ecosystem vision. This shows,
for instance, at a landscape level, quality of
forest cover, expanse and depth of peatland,
identified key biodiversity conservation
areas, orang-utan and tiger habitat.
3. Risk analysis: identify where ecological
values meriting protection fall within
concession areas.
Impact mapping (temporal analysis)
1. Compare satellite imagery covering relevant
time frame: One method of determining
extent of forest clearance within a
concession area is to analyse and compare
satellite images from multiple dates. Unlike
the Brazilian Amazon that has one month of
relatively cloud free skies, Indonesia’s land
area is often obscured by thick cloud cover,
often rendering satellite images of limited
use in assessing changes in land cover.
2. Overlay satellite analysis with ecological
values map and concession boundaries
to determine change in quality or extent of
values within a concession area.
Field investigations and aerial monitoring
(ground truthing)
1. Determine priority areas for investigation
based on ecological risk analysis, impact
analyses and other intelligence suggestive
of potential active clearance.
2. Overflight surveillance of groups of
concessions to verify and document
overview of active clearance and
infrastructural development within areas
identified by risk mapping as holding
important ecological values.
3. Gain access to concession areas to obtain
documentary evidence of ecological
and social values impacted by company
operations. Where possible logistically, this
may include evidence of peat depth, orang-
utan habitat (eg nests), quality of forest,
legal compliance in operations. Further
intelligence may be gathered through
testimonies from workers and communities.
9
How Sinar Mas is expanding empires of destruction
Maps used within case studies presented
in this report combine several sets of data:
1. Sinar Mas pulpwood concession
boundaries: based on concessions maps
recently made available by the Indonesian
Ministry of Forestry and confidential Sinar
Mas documents held by Greenpeace;
and Greenpeace analysis of concession
documentation. Source: MoFor (2010)
2. Sinar Mas oil palm concession boundaries:
based on concession maps provided
by the Forestry Unit (UPTD BIPHUT)
Ketapan District and confidential Sinar
Mas documents held by Greenpeace;
and Greenpeace analysis of concession
documentation.
3. Natural forest cover: based on 2006 maps
recently made available by the Indonesian
Ministry of Forestry. Source: MoFor (2009)
4. Peatland distribution: based on maps
published by Wetlands International and
confidential Sinar Mas documents held by
Greenpeace. Source: Wahyunto et al (2003,
2004, 2006)
5. Sumatran tiger habitat distribution: based
on maps compiled by WWF. Source:
Roosita and Sulistyawan (2010) and WWF/
SaveSumatra.org
6. Priority Tiger Conservation Landscapes:
based on maps published by the Save the
Tiger Fund. Source: Dinerstein et al (2006)
7. Orang-utan habitat: based on maps
compiled by UNEP. Source: Meijaard et al
(2004)
10
Pulping the Forested tiger habitat
Sinar Mas pulpwood expansion targets

Planet, 2010 how sinar mas

is pulping the
planet
iii
Sinar Mas pulpwood existing concessions
Priority tiger conservation landscape

PULPING
IS
how SINAr MAS
the
  1
PLANet
July 2010
global
an independent
Greenpeace is on that acts to e International
campaigning organisati to Published by Greenpeac
and behaviour, raat 5
change attitudes nt Ottho Heldringst
the environme
protect and conserve 1066 AZ Amsterdam
peace. s
and to promote The Netherland
committed to stopping eace.org
enquiries@int.greenpg/forests
Greenpeace is
climate change. www.greenpeace.or
protect the world’s
We campaign to plants,
forests and the
remaining ancient that depend on
them.
animals and peoples
, expose and confront
We investigate causing forest
the trade in products
climate change.
destruction and
ts and industry
We challenge governmendestruction and

In 2009, APP emphasised: ‘Paper

in forest
to end their role
climate change.
peoples.
rights of forest
We support the

produced by Asia Pulp & Paper (APP)

does not and will not contain any
JN 335

pulpwood from high conservation value

78
natural forest.’

Bukit Tigapuluh,
Jambi, April 2010
Greenpeace documents active
clearance by APP’s supplier (Sinarmas
Forestry) of one of the last refuges for
the critically endangered Sumatran tiger.

‘Together with the fiber suppliers,

the [pulp and paper division] units
protect, conserve and restore
the natural resources, often
far beyond what is mandated
by government and other PT Artelindo Wiratama
institutional policies.’

  1 Location:
Date:
Lat. S 0° 45.59’ Long. E 101° 51.17’
26 April 2010, 11:19
Sinar Mas Group website (2010) Group overview
on sustainability www.sinarmas.com/en/
sustainability/#
 Sinar Mas pulpwood expansion targets 11
Sinar Mas pulpwood existing concessions

How Sinar Mas is expanding empires of destruction

Forested tiger habitat on peatland (by peat depth)
0.5m 1m 1–2m 2–4m >4m

Kerumutan, Riau, April 2010

Greenpeace documents active clearance by
Sinarmas Forestry and drainage of >3m deep
peat in an important area for the critically
endangered Sumatran tiger. Development of
peatland areas with depth >3 metres is illegal as
79
these areas are protected under Indonesian law.
  2

‘APP-Indonesia’s fiber
suppliers only develop
least-valuable degraded PT Bina Duta Laksana
Location: Lat. S 0° 13.68’ Long. E 102° 52.50’
  2
forests and denuded Date: April 28 2010: 17:41

wasteland.’
APP myths and realities website
12
Oily palms, 2010

‘Environmental sustainability has

become a fundamental guiding
principle in achieving sustainable
Pt Kartika Prima Cipta
Location: Lat. N 0° 35’ 47.40” Long. E 112° 3’ 45.60”
raw materials for the pulp & paper
Date: July 6 2010 and also the palm oil operations.
Participation in the Roundtable on
Sustainable Palm Oil (RSPO) has
added a new dimension of social,
economic and environmental
sustainability.’
Sinar Mas Group website (2010) Group overview
on sustainability www.sinarmas.com/en/
sustainability/#

Sinar Mas shifting policies
and BAU operations:
timeline of inaction
2008:
GAR 2008 presentation to investors indicates
that land currently held by Sinar Mas available
for oil palm development is in Kalimantan.
Greenpeace field investigations in Kalimantan
between 2008 and 2010 expose active
clearance by GAR-related companies of high-
carbon peatland and UNEP-identified habitat
for endangered orang-utan.
December 2009:
Greenpeace publishes ‘Illegal forest clearance
and RSPO greenwash: case studies of Sinar
80
Mas’. The report provides several case
studies of illegal development within Sinar
Mas concessions; this includes land clearance
without an Environmental Impact Assessment
81
(EIA) or without timber cutting permits, and
development of peat >3 metres deep.
21 December 2009: following publication
of the Greenpeace report and as a result of
pressure from corporate consumers, SMART
announces that it will review its environmental
policies: ‘We are in the process of formulating
a communication program on our strategy
and policy in regards to the environmental
operating procedure, especially regarding
opening of new plantations. We will make the
appropriate announcement, as and when
82
there is any progress on this matter.’
February 2010:
4 February 2010: SMART publicly ‘re-
affirms’ its ‘commitment to: No Conversion
on land with High Carbon stock, i.e. no
development on Peat soils and Primary
Forest’ and ‘No Conversion on High
83
Conservation Value Area’.
March 2010:
30 March 2010: in a letter to WWF, Daud
Dharsono, President Director at SMART
states: ‘Since late November 2009, the
Company has decided and has given
instructions to operational management on
the ground to stop and avoid conversion
of any peat lands regardless of the depth,
84
primary forests and HCV areas.’ He writes:
‘As to peat lands, as well as HCV areas, which
have been opened during the period of 2009,
the Company has decided to restore the
cleared areas according to the National RSPO
85
guidelines.’
April 2010:
GAR releases its 2009 Annual Review; this
states: ‘As a policy, we do not develop on land
with high carbon stock such as peat soils and
86
primary forest.’
Greenpeace publishes a follow-up to the
December report on PT ALM, ‘Sinar Mas –
Rainforest and Peatland Destruction’. This
contains analysis of satellite imagery between
19 November 2009 and 23 February 2010,
showing ongoing clearance.
27 April: SMART issues a statement to the
Singapore stock exchange stating that it
‘has suspended the plantation manager
responsible for the [PT ALM] area highlighted
in the Greenpeace report.’
87
27 April: SMART announces that it is engaging
the services of two RSPO certifiers to ‘verify
88
independently reports made by Greenpeace’.
The terms of the ‘verification’ have not been
made public, but Greenpeace understands
that it is restricted in scale and scope to the
handful of oil palm concessions run by Sinar
Mas that have been named in Greenpeace
reports published 2008–2010. These reports
document case studies illustrating how
Sinar Mas is a key driver of Indonesia’s
deforestation-related emissions, through
natural forest clearance and peatland and
habitat destruction. Rather than addressing
these macro-level concerns, the ‘verification’
is assessing operations in limited terms
of legal and RSPO criteria. One of the
concessions included in this ‘verification’
is PT ALM.
13
How Sinar Mas is expanding empires of destruction
June 2010:
SMART issues a further statement to the
Singapore stock exchange stating that it has
‘recently discovered that one of its managers
in the Semitau area, West Kalimantan has not
complied with Standard Operating Procedures
(SOP) relating to planting oil palm trees on
89
peat land’. The area in question is PT Kartika
Prima Cipta, a concession area covered in the
December 2009 Greenpeace report.
July 2010:
Greenpeace aerial monitoring and field
investigation in two Sinar Mas controlled
concessions document recent clearance
of deep peat in PT ALM and clearance of
UNEP-identified orang-utan habitat in PT
BNM, another recent concession in West
Kalimantan.
SMART announces on 23 July that the public
presentation of the findings of the audit of
Greenpeace’s investigations of Sinar Mas
operations will be postponed from 29 July until
90
10 August 2010.
14
The climate crisis
and Sinar Mas’ high
carbon destruction
PT Agro Lestari Mandiri,
5 July 2010
PT Agro Lestari Mandiri (ALM) is a Sinar Mas
oil palm concession in the Ketapang District
91
of West Kalimantan. It was incorporated in
92
2006. The concession covers about 16,500
93
hectares.
In 2006, PT SMART agrees to work jointly
with WWF on ‘assessing, protecting and
managing HCVFs [High Conservation Value
94
Forests] in their oil palm concession’. One
of the established pilot projects is PT ALM.
According to the HCV map reproduced
in a January 2010 confidential Sinar Mas
95
report obtained by Greenpeace, the PT
ALM concession area contains an extensive
peat dome covering nearly one-third of the
concession area with the vast majority of this
>3 metres deep, clearance of which would be
96
illegal under Indonesian law. Any clearance of
peatland post-November 2009 violates GAR
97
explicit policy and SMART commitments.
In April 2010, Greenpeace publishes
satellite image analysis revealing ongoing
peatland and forest clearance between   4
9 November 2009 and 23 February   3
98
2010. The April publication includes
photographic evidence from Greenpeace
field investigations on 14 March 2010.
Investigations document ongoing peatland
and HCVF clearance, including orang-utan
99
habitat as identified by UNEP. Sinar Mas oil palm concession
Peatland (by peat depth) < 2m 2–3m >3m
In response, in April 2010, SMART issues
a statement to the Singapore stock
exchange stating that it ‘has suspended
the plantation manager responsible
for the [PT ALM] area highlighted in the
100
‘[GAR] do not develop on
Greenpeace report’.
land with high carbon
On 5 July 2010, aerial monitoring by stock such as peat soils
Greenpeace documents ongoing active and primary forest.’
clearance of forested peatland in PT ALM.
GAR website, 2010
 ‘In addition, planting oil palm 15

How Sinar Mas is expanding empires of destruction

trees in degraded land has a
positive carbon impact on the
environment.’
SMART ‘The Wider Perspective on Palm Oil in
Indonesia’, 23 June 2010

PT Agro Lestari Mandiri PT Agro Lestari Mandiri

Location: Lat. E 110° 30’ 27.33” Long. S 1° 35’ 21.29” Location: Lat. E 110° 30’ 25.79” Long. S 1° 34’ 46.20”
  3   4
Date: July 5 2010, 14:25 Date: July 5 2010, 14:25
16
The biodiversity crisis
and habitat destruction
PT Agro Lestari Mandiri, 2009-2010

Sinar Mas oil palm concession

Forest (2006)
Orang-utan habitat
Forested orang-utan habitat

NEW EVIDENCE
SINAR MAS -
RAINFOREST
  5 PEATLAND DEAN D
STRUCT ION
Researchers document a loan male   6

25' 9.2" E1 36' 0.8" S/110

orang-utan in habitat that has been

n. 9 March 2010, GPS:

heavily fragmented by oil palm

District,West-Kalimanta
development, concession holder

law. PT ALM, Ketapang

according to Indonesian
unknown.

converted to plantations
Location: Central Kalimantan

metres deep may not be

Date: August 7 2007
The rapid expansion of

Peatland three or more

Value area in PT ALM concession.
oil palm plantations in For more information
contact:
enquiries@greenpeace.org
PUBLISHED IN APRIL

peat within the High Conservation

2010
by Greenpeace International
Ottho Heldringstraat

Borneo in response to
5
1066 AZ Amsterdam
The Netherlands
Tel: +31 20 7182000
Fax: +31 20 7182002
JN 324

Cleared forests on deep

www.greenpeace.o
rg

international demand (the

  5
© Greenpeace/Ryo
Adna

oil is used for cooking,

cosmetics, mechanics, PT Agro Lestari Mandiri
and more recently as Location: Lat. S 1 36’ 0.8” Long. E 110 25’ 9.2”
source of bio-diesel) has Date: March 9 2010
accelerated habitat losses.
Forest fragmentation
further reduces the size of
orangutan populations.’
IUCN Red List (2010)

RAPID RESPONSE ASSESSME

NT   6
THE LAST STAND PT Agro Lestari Mandiri
OF THE ORANGUTAN
STATE OF EMERGENCY: ILLEG Location: Lat. S 1º 36’ 27.36” Long. E 110º 24’ 36.96”
AL LOGGING, FIRE
AND PALM OIL IN INDONESIA’S
NATIONAL PARKS Date: April 22 2009

 17

How Sinar Mas is expanding empires of destruction

Sinar Mas oil palm concession Forest (2006) Orang-utan habitat Forested orang-utan habitat

PT Bangun Nusa Mandiri,

5 July 2010

PT Bangun Nusa Mandiri (PT BNM) is a Sinar

Mas oil palm company with a concession in   7
Ketapang, West Kalimantan. PT BNM was   8
101
incorporated in 2007. The GAR 2009 Annual
102
Report lists it as a subsidiary of a subsidiary.

Risk mapping of ecosystems values by

Greenpeace reveals significant 2006 forested
orang-utan habitat at the heart of the
concession area. The analysis overlays UNEP
2004 identified orang-utan habitat (most recent
available data) with 2010 Ministry of Forestry
landcover data for 2006 (most recent official
data available).

Greenpeace aerial monitoring on 5 July 2010

documents extensive recent clearance within   7
a core area of contiguous forest identified PT Bangun Nusa Mandiri
as orang-utan habitat. This is supported Location: Lat. S 2° 7’ 42.56”
by photographic evidence gathered during Long. E 110° 52’ 14.70”
Date: July 5 2010: 13:17
field investigations, which document recent
clearance within rainforest areas identified by
UNEP as orang-utan habitat.

  8
‘SMART only develops on
PT Bangun Nusa Mandiri
degraded land that does Location: Lat. S 2° 8’10.80”
not have HCV.’ Long. E 110° 52’50.41”
Date: July 5 2010: 13:11
SMART (2010d) ‘The Wider Perspective
on Palm Oil in Indonesia’, 23 June 2010
18
THE ROLE OF The market
AND FINANCE SECTOR

In recent months, several leading Sinar Mas also receives considerable support ‘WWF urges existing and
multinationals have responded to from the financial sector in terms of loans,
potential investors in and
Greenpeace’s evidence of Sinar Mas’ illegal shareholdings, banking services and other
and destructive environmental practices by financial services. Key banks, financiers and
buyers of SMG’s Golden
ending their contracts with GAR/SMART shareholders have recently included DEG Agri and PT SMART to
hold off any business
107 108
and APP. Unilever, Kraft and Nestle have (Germany), WestLB (Germany), Citibank
109 110
dropped contracts with GAR/SMART. (USA), RBS (UK) , Standard Chartered
Furthermore, Nestle, Kraft and Unilever Bank (UK),
111
BlackRock (UK),
112
F&C Asset
engagements with SMG
are implementing new policies that will Management (UK),
113
Goldman Sachs (USA)
114
until the group has proven
also rule out supplies from APP, unless the and UBS (Switzerland).
115
that its actions match its
company and its suppliers make substantial
commitments through
changes; and Kimberly-Clark (USA), which Given evidence of the ongoing impact of Sinar
does not purchases pulp or other raw Mas operations, corporate consumers and
transparent, public,
materials from APP, is implementing a global financiers should stop trading and otherwise independent, third party
fibre procurement policy that strengthens divest all financial links with companies within verification acceptable to
environmental protection and will continue Sinar Mas until it has taken the necessary
to exclude APP from its supply chain.
103
steps to ensure it is no longer involved with
relevant stakeholders.’
Most recently, Carrefour confirmed that it forest and peatland destruction. WWF (2010) Press Release
has stopped buying from APP for its own
104
brands and Tesco has announced that it
105
will do the same by the end of the year.

However, companies listed as customers

of Sinar Mas’ palm oil division in June 2009
which have not yet made similar commitments
include: Cargill (USA), Burger King (USA) and
106
Pizza Hut (USA).
Is Sinar Mas serious
about becoming a clean,
transparent business?
Sinar Mas claims to be a transparent and
clean business. However, Greenpeace
investigations show expansion and
development plans are secretive; company
structure is opaque; public scrutiny of
plans and operations is made impossible
through limited availability of concession
development plans, including concession
boundaries and regulatory documents
such as EIA assessments.
Despite these constraints and using best
available maps and official or company
data, Greenpeace has repeatedly
documented and exposed active
destruction of forests, peatland and habitat
within Sinar Mas operations. Local and
international environmental and social
justice NGOs have also catalogued Sinar
117
Mas’ negative impact.
These investigations raise a number of
questions about Sinar Mas operations as
a whole that Sinar Mas must answer in the
spirit of transparency, honesty and genuine
stakeholder engagement, and which the
findings of the SMART-commissioned
‘verification’ of Greenpeace’s
investigations will fail to address:
19
How Sinar Mas is expanding empires of destruction
1. Will Sinar Mas make publicly ‘Hand in hand with trust,
available concession maps of areas
We Achieve Transparent and
in acquisition, owned or managed
by Sinar Mas, including joint venture
Clean Business.’ APP website
116
companies, in the pulp, palm, and
coal sectors within Indonesia and
globally?
2. Will Sinar Mas commit to a group
level independent sustainability audit
of all operations within Indonesia
and globally?
3. Will Sinar Mas make publicly
available maps and data revealing
the extent and location of peatland
and HCVF destroyed since 2005
within Indonesia and globally;
state how operations without HCV
assessment at time of clearance
(in breach of RSPO P&C) have been
identified; disclose which areas have
been restored; and provide third-
party verification of this information?
4. Will Sinar Mas commit to an
immediate end to all deforestation
and peatland development within
Indonesia and globally?
20
GReenpeace
call to action
Stop the destruction
In order to protect the climate,
biodiversity and the interests of
Indonesia’s forest communities,
deforestation and peatland
conversion must end.
The Government of Indonesia Industry, the market and The international community
needs to extend the recently financial sectors must support must support this by coming
announced moratorium on ‘new this by ensuring they are no up with adequate funds and
concessions on conversion of longer involved in forest and technical means to tackle the
natural forests and peatlands into peatland destruction. drivers of deforestation and
plantations’ to include a halt
118
ensure the implementation of
to all clearing of forested areas effective measures to end natural
within existing concessions. This forest and habitat loss and halt
is a first step toward longer-term peatland development.
measures to end natural forest
loss, which must incorporate
safeguards to protect
biodiversity and indigenous
peoples’ rights. All peatland
including in existing concessions
must be immediately protected.
How Sinar Mas is expanding empires of destruction
21
22
BIBLIOGRAPHY
APP (2009) ‘Growing a sustainable future, Environmental and Social
Sustainability Report for Indonesia’ 2007 www.asiapulppaper.com/
portal/APP_Portal.nsf/WebMenuPage/5BFB083D5FD9781C472575E
F0035E314/$FILE/090724%20APP-2007-New%20Rev1Final.pdf
Brown, K (2010) ‘Palm oil chief defends environmental record’
Financial Times, London, 19 July 2010 www.ft.com/cms/
s/0/3fc33566-935b-11df-bb9a-00144feab49a.html
Caliman, J P, Dharsono, D, (2008) ‘PT SMART Tbk’, Presentation,
London, 8 October 2008
CDI-ERM (2008) ‘Handbook of energy & economic statistics of
Indonesia’ Centre for Data and Information on Energy and Mineral
Resources
Crest Capital (2010) www.crestcapitalasia.com/en/human_capital.
html viewed 4 June 2010
Deutsch, A (2010) ‘Greenpeace fires salvo over paper producer’
Financial Times, London. 5 July 2010 www.ft.com/cms/s/0/fc4a3b4a-
8801-11df-a4e7-00144feabdc0.html?ftcamp=rss
Dharsono, D (2010) Letter to WWF 30 March 2010
Dinerstein et al (2006) Setting Priorities for the Conservation and
Recovery of Wild Tigers: 2005–2015, A User’s Guide. WWF, Wildlife
Conservation Socity (WCS), Smithsonian, and NFWF-STF, Washington,
D.C. – New York.
DSS (2010) ‘Annual Report 2009’ PT Dian Swastatika Sentosa www.dss.
co.id/component/docman/doc_download/4-annual-report-2009.html
Eka Tjipta Foundation (2008) www.ekatjiptafoundation.org/index.
php?s=file_download&id=4]
Evans, R (2010) ‘Trafigura fined €1m for exporting toxic waste
to Africa.’ Guardian, London 23 July 2010 www.guardian.co.uk/
world/2010/jul/23/trafigura-dutch-fine-waste-export
Fortson, D (2010) ‘Palm oil pariah bites back at primate protest’
Sunday Times, London 25 July 2010 www.thesundaytimes.co.uk/sto/
business/energy_and_environment/article353075.ece
GAR (2008a) ‘Annual Report 2007’ Golden Agri Resources, March
2008
GAR (2008b) ‘Interim Performance Presentation. 1H 2008: first
half ended 30th June 2008’ www.goldenagri.com.sg/upload/E5H/
Regulatory%20Fillings/SGX2008/Interim%20Performance%20
Presentation%201H%202008%20first%20half%20ended%2030th%20
June%202008.pdf
GAR (2009) ‘Company Presentation’ June 2009 www.
finanznachrichten.de/pdf/20090609_182426_E5H_532D3C19AB21
23C5482575D0003750AC.1.pdf
GAR (2010) ‘Annual Report 2009’ Golden Agri Resources, 18 March
2010 www.goldenagri.com.sg/upload/E5H/Annual%20Reports/
Completed%20Reports/2009/GoldenAgriAR09_final.pdf
Government of Indonesia (1990) Presidential Decree No. 32/1990 on
‘Management of Protected Areas’, 25 July 1990: Article 10 specifies
that ‘upstream swamp and peatlands deeper than 3 metres should be
protected,’
Government of Norway (2010) ‘Norway and Indonesia in partnership
to reduce emissions from deforestation’, Government of Norway press
release, 26 May 2010 www.regjeringen.no/en/dep/smk/press-center/
Press-releases/2010/Norway-and-Indonesia-in-partnership-to-
reduce-emissions-from-deforestation.html?id=605709
Greenall, M (2007) ‘Golden Agri-Resources’ BNP Paribas Corporate &
Investment Banking 4 April 2007
Greenbury, Aida (2010a) ‘APP responds to Greenpeace’s false
accusations’ available at www.asiapulppaper.com/portal/app_portal.
nsf/Web-MenuPage/ECCB37ABEECB4465472577590031E2BD/$FI
LE/100707APPStatement-GreenpeaceReport.pdf
Greenbury, Aida (2010b) ‘Letter to stakeholders’ APP, Jakarta 22 July
2010
Greenpeace International (2007) ‘How the palm oil industry is
cooking the climate’ Greenpeace International, November 2007 www.
greenpeace.org/raw/content/international/press/reports/cookingthe-
climate-full.pdf
Greenpeace International (2008a) ‘How Unilever’s palm oil suppliers
are burning up Borneo’ Greenpeace International, April 2008 http://
www.greenpeace.org/international/press/reports/how-unilever-
palm-oil-supplier
Greenpeace International (2008b) ‘The Hidden Carbon Liability of
Indonesian Palm Oil’, Greenpeace International, May 2008 http://
www.greenpeace.org/international/en/publications/reports/hidden-
carbon-liability-of-palm-oil/Greenpeace UK (2009) ‘Illegal forest
clearance and RSPO greenwash: case study of Sinar Mas’ Greenpeace
UK, December 2009 www.greenpeace.org.uk/files/pdfs/forests/
sinarmasRSPOgreenwash.pdf
Greenpeace International (2010a) ‘Caught red handed: How Nestlé’s
use of palm oil is having a devastating impact on rainforest, the climate
and orang-utans’, Greenpeace International, March 2010 http://
www.greenpeace.org/international/en/publications/reports/caught-
red-handed-how-nestle/Greenpeace International (2010b) ‘New
evidence Sinar Mas: rainforest and peat land destruction’ Greenpeace
International, April 2010 www.greenpeace.org/raw/content/usa/
press-center/reports4/new-evidence-of-sinar-mas-rai.pdf
Greenpeace International (2010c) ‘How Sinar Mas is pulping the
planet’ Greenpeace International, July 2010 www.greenpeace.org/
international/Global/international/publications/forests/2010/Sinar-
Mas-Pulping-The-Planet.pdf
Indah Kiat (2009) ‘Consolidated financial statements for the year
ended December 31, 2009 and 2008’, PT Indah Kiat Pulp & Paper Tbk
http://202.155.2.84/Financial/2009/12/INKP_200912.zip
Investor Daily (2009) ‘Investasi US$ 400 Juta, Sinar Mas Ekspansi ke
Batubara Harian’, Investor Daily, 22 May 2009 www.tekmira.esdm.
go.id/currentissues/?p=2027
IUCN (2010) ‘IUCN Red List of Threatened Species’. Version 2010.2.
www.iucnredlist.org
Just Food (2010) ‘Indonesia: Greenpeace attacks retailers over paper
suppliers,’6 July 2010 www.just-food.com/news/greenpeace-attacks-
retailers-over-paper-suppliers_id111630.aspx
Kennedy, G D (2009) ‘GOL Attracts US$1.6bn Agro Investment’, Daily
Observer, Liberia. 16 November 2009 http://liberianobserver.com/
node/2949
Lontar Papyrus (2010) ‘Consolidated financial statements for the year
ended December 31, 2009 and 2008’, Pabrik Kertas Tjiwi Kimia Pulp &
Paper Tbk http://202.155.2.84/Financial/2009/12/LPPI_200912.zip
Mattinson, A (2010) ‘Controversial palm oil firm Golden Agri-Resources
asks Bell Pottinger for help’ PR Week, 28 April 2010 www.prweek.com/
news/999738/Controversial-palm-oil-firm-Golden-Agri-Resources-
asks-Bell-Pottinger-help
Meijaard, E., Dennis, R. and Singleton, I. (2004) Borneo Orangutan
PHVA Habitats Units: Composite dataset developed by Meijaard
& Dennis (2003) and amended by delegates of the Orangutan
PHVAWorkshop, Jakarta,15-18 January 2004. Subsequently further
updated by Erik Meijaard.
MoFor (2009) ‘Landcover Indonesia 2006’, Forestry Planning Agency of
the Ministry of Forestry, 2009
MoFor (2010) ‘Perkembangan Permohonan IUPHHK-HTI Tahun
2008 s/d 31 Desember 2009’ www.dephut.go.id/files/IUPHHK_HT_
Permohonan_2008_2009.pdf
Petromindo (2010) Sinar Mas advert for a Senior Mine Engineer,
Indonesian Oil, Mining and Energy News, 2 March 2010 www.
petromindo.com/?table=employer&pos=detail&id=4976
PT Pindo Deli (2010) ‘Consolidated financial statements for the year
ended December 31, 2009 and 2008’, PT Pindo Deli Pulp & Paper Tbk
http://202.155.2.84/Financial/2009/12/PIDL_200912.zip
Pirard, R and R Rokhim (2006) ‘Asia pulp and paper Indonesia: the
business rationale that led to forest degradation and financial collapse’
Center for International Forestry Research (CIFOR), Bogor, Indonesia.
ProPrint (2009) ‘ProPrint webcast: Can the Indonesian pulp and paper
industry be sustainable? - Interview of Aida Greenbury, APP, by Steve
Crowe, Editor’, ProPrint, 17 November 2009 www.appbrasil.com.br/
noticias/0035.htm
RISI (2008) ‘RISI Power List - Top 1 through 10’ RISI 31 July 2008
www.risiinfo.com/magazines/July/2008/PPI/pulp-paper/magazine/
international/july/2008/PPIMagJuly-The-RISI-top-50-power-
list-1-10.html
Roosita, H and B.S. Sulistyawan (2010) ‘Ecosystem Based Spatial
Planning As a Guide for the Precautionary Approach to Conservation
of HCV Areas in Sumatra’. Ministry for the Environment of Republic
Indonesia and WWF Indonesia www.hcvnetwork.org/resources/
training-courses-workshops/2.4%20Ecosystem%20Based%20
Spatial%20Planning%20ppt-Hermien%20Roosita-Barano.pdf
Simpur Hutan (2006) ‘Identifikasi HCVF, Konsesi Perkebunan Kelapa
Sawit PT Agrolestari Mandiri, Kabupaten Ketapang, Laboran Final’
Simpur Hutan, October 2006
SMART (2009) ‘Clarification on Greenpeace’s allegations to PT SMART
Tbk’. 15 December 2009 www.goldenagri.com.sg/upload/E5H/
Regulatory%20Fillings/SGX2009/GAR15-12-2009-ClarificationAnno
uncementsbyPTSinarMasAgroResourcesandTechnologyTbk.pdf
SMART (2010a), ‘To: All the partners of PT Smart, Announcement on
PT Smart Tbk’s commitments toward environmentally sustainable
production of palm oil.’ 4 February 2010 www.goldenagri.com.sg/
upload/E5H/Regulatory%20Fillings/SGX2010/GAR2-08-02-2010-
Release%20by%20PT%20Sinar%20Mas%20Agro%20Resources%20
and%20Technology%20Tbk.pdf
SMART (2010b) ‘SMART reaffirms its commitment to sustainable
palm oil’, 27 April 2010 www.goldenagri.com.sg/upload/E5H/
Regulatory%20Fillings/SGX2010/GAR12-27-04-2010-
Release%20by%20PT%20SMART%20Announcement%20-%20
ReaffirmsItsCommitmenttoSustainable.pdf
SMART (2010c) PT SMART 2009 Annual Report www.smart-tbk.com/
investor/annual_report/2009/SMART09_AR_Smal_%20All.pdf
SMART (2010d) ‘The wider perspective on palm oil in Indonesia’, 23
June 2010 www.smart-tbk.com/news/the-wider-perspective-on-
palm-oil-in-indonesia-23-Jun-2010.pdf
SMART (2010e) ‘Disclosure of Information of PT SMART Tbk’ 25
June 2010 www.goldenagri.com.sg/upload/E5H/Regulatory%20
Fillings/SGX2010/GAR25-10-06-2010-ReleasebyPTSMART-
DisclosureofInformation.pdf
SMART (2010f) ‘SMART clarifies statements in Greenpeace report’ 6
July 2010 www.goldenagri.com.sg/upload/E5H/Regulatory%20Fillings/
SGX2010/GAR28-06-07-2010-ReleasebyPTSMART-Greenpeace.pdf
SMART (2010g) ‘Release of Independent Verification Exercise Report
is Postponed’ 24 July 2010 www.smart-tbk.com/news/20100724%20
-%20Press%20Release%20-%20Release%20of%20Independent%20
Verification%20Exercise%20Report%20is%20Postponed%20-%20
English.pdf
SMART (2010h) ‘SMART responds to latest Greenpeace Report’ 30
July 2010 www.smart-tbk.com/announcement/20100729%20
-%20Press%20Release%20-%20SMART%20RESPONDS%20TO%20
LATEST%20GREENPEACE%20REPORT.pdf
Studwell, J (2007) ‘Asian Godfathers: Money and Power in Hong Kong
and South East Asia’, Profile Books, London
Tjiwi Kimia (2010) ‘Consolidated financial statements for the
year ended December 31, 2009 and 2008’, Pabrik Kertas Tjiwi
Kimia Pulp & Paper Tbk http://202.155.2.84/Financial/2009/12/
TKIM_200912.zip
Thomson Reuters (2010a) Institutional fund holder lists for Indah
Kiat, 14 April 2010
Thomson Reuters (2010b) Institutional and mutual fund holder lists
for Golden Agri Resources, 19 May 2010.
TÜV (2009) ‘Public Summary: Sustainable forest management
certification, PT. Wirakarya Sakti,  PT TUV International Indonesia.’
www.tuv.com/web/media_get.php?mediaid=23890&fileid=56363
&sprachid=2
Uryu et al. (2008) ‘Deforestation, forest degradation, biodiversity
loss and CO2 emissions in Riau, Sumatra, Indonesia.’ 27 February
2008
Wahyunto et al (2006) ‘Maps of peatland distribution, area and
carbon content in Papua, 2000-2001’ Wetlands International –
Indonesia Programme and Wildlife Habitat Canada (WHC)
Wahyunto, S. Ritung dan H. Subagjo (2003) Peta Luas Sebaran Lahan
Gambut dan Kandungan Karbon di Pulau Sumatera / Maps of Area of
Peatland Distribution and Carbon Content in Sumatera, 1990 – 2002.
Wetlands International - Indonesia Programme & Wildlife Habitat
Canada (WHC)
Wahyunto, S. Ritung dan H. Subagjo (2004) Peta Sebaran Lahan
Gambut, Luas dan Kandungan Karbon di Kalimantan / Map of Peatland
Distribution Area and Carbon Content in Kalimantan, 2000 – 2002.
Wetlands International - Indonesia Programme & Wildlife Habitat
Canada (WHC)
WWF (2006) ‘Indonesian oil palm companies commit to protect
forests’, WWF website, posted 11 May 2006 http://wwf.panda.
org/what_we_do/footprint/agriculture/palm_oil/news/?68820/
Indonesian-oil-palm-companies-commit-to-protect-forests
WWF (2009a) ‘APP’s forest clearing linked to 12 years of human
and tiger deaths in Sumatra’, 17 March 2009 www.panda.org/
wwf_news/news/?uNewsID=159162
WWF (2009b) ‘Paper giant Asia Pulp and Paper set to destroy home
of reintroduced orangutans, indigenous tribes’, 18 May 2009 www.
worldwildlife.org/who/media/press/2009/WWFPresitem12414.
html
WWF (2010) ‘WWF reactive statement on PT SMART’s
announcement of environmental commitments for its palm oil
production’ 15 March 2010 www.worldwildlife.org/who/media/
press/2010/WWFPresitem15802.html
WWF et al (2008) ‘Asia Pulp & Paper (APP) threatens Bukit Tigapuluh
landscape’, WWF Indonesia, KKI WARSI (Indonesian Conservation
Community), Zoological Society of London, Frankfurt Zoological
Society and Yayasan Program Konservasi Harimau Sumatera
(PKHS), 8 January 2008 www.worldwildlife.org/who/media/
press/2008/WWFBinaryitem7629.pdf
Endnotes
32 GAR (2010):12
33 GAR (2010):12
34 Internal Sinar Mas documents, copies held by Greenpeace
International
35 Greenpeace 2010 analysis based on internal Sinar Mas
documents and mapping data from MoFor (2009) and Wahyunto
et al (2006)
36 Greenall(2007): 8
1 e g WWF (2009a,b); Greenpeace International (2007); 37 Brown (2010) and ‘SMART also manages all oil palm plantations
Greenpeace International (2008a,b); Greenpeace UK (2009); of GAR which has a total planted area of 430,200 hectares
Greenpeace International (2010a,b,c) (including small holders) in Indonesia, as at 31 March 2010.’
2 eg Greenpeace International (2007); Greenpeace International Source: SMART (2010f)
(2008a,b); Greenpeace UK (2009); Greenpeace International 38 Fortson (2010)
(2010a,b,c) 39 Caliman and Dharsono (2008)
3 Crest Capital (2010) 40 Caliman and Dharsono (2008)
4 GAR website 41 Caliman and Dharsono (2008)
5 eg APP states ‘APP-Indonesia’s fiber suppliers only develop 42 eg GAR (2008b)
least-valuable degraded forests and denuded wasteland’. 43 GAR (2009)
Source: APP Myths and Realities: http://appmnr.app.co.id/ 44 GAR (2010): 21
env_app-mr_tst/index.php?option=com_content&view=arti 45 GAR (2010): 21
cle&id=62%3Arumor-mill-2&catid=39%3Abiodiversity-and- 46 Kennedy (2009)
conservation&Itemid=41&lang=’ GAR states “We do not develop 47 Greenpeace 2010 analysis based on internal Sinar Mas
on land with high carbon stock such as peat soils and primary documents and mapping data from MoFor (2009) and Wahyunto
forest.’ Source: GAR website www.goldenagri.com.sg/index. et al (2006)
php?page=social-responsibility 48 ProPrint (2009)
6 Greenpeace International (2007); Greenpeace International 49 Greenpeace International (2010c)
(2008a,b); Greenpeace UK (2009); Greenpeace International 
50 MoFor (2010b)
(2010a,b,c) 51 Greenpeace International mapping analysis used in Greenpeace
7 eg WWF (2009a, b) ; WWF et al (2008)  International (2010c)
52 Confidential Sinar Mas document, copy held by Greenpeace
8 eg Greenpeace International (2007); Greenpeace International
(2008a,b); Greenpeace UK (2009); Greenpeace International International
(2010a,b,c)WWF (2009a,b); WWF et al (2008); Uryu (2008) 53 RISI (2008)
9 eg see Greenpeace International (2010a, 2010b, 2010c) 54 RISI (2008)
10 eg see Greenpeace International (2010c); Deutsch (2010); Just 55 Confidential Sinar Mas document, copy held by Greenpeace
Food (2010) International
11 eg Mattinson (2010) 56 Greenbury (2010a)
12 ProPrint (2009) 57 Greenbury (2010a)
13 Evans (2010) 58 Confidential Sinar Mas document, copy held by Greenpeace
14 Evans (2010) International
15 Internal Sinar Mas document, copy held by Greenpeace 59 Confidential 2006 Sinar Mas document, copy held by Greenpeace
International International
16 Greenpeace International mapping analysis 2010 60 See Greenpeace (2010c)
17 Greenpeace Southesat Asia investigations July 2010 61 Greenpeace 2010 analysis based on internal Sinar Mas
18 For Sinar Mas Group see Studwell (2007): 164-167; Asia Pulp documents and mapping data from MoFor (2009) and Wahyunto
& Paper see Pirard and Rokhim (2006): 4; for Golden Agri et al (2006)
Resources see Greenpeace International (2010): 7 62 P roduction almost tripled from 2000 (77m tonnes) to 2007
19 Petromindo (2010) (217m tonnes). Source: CDI-ERM (2008)
20 APP (2009b): 21; see also Greenpeace International (2010c) 63 Crest Capital (2010)
21 Greenbury (2010b); see also Greenpeace International (2010c) 
64 Loyang (2008)
22 Internal 2007 SMG document states current capacity of 2.6 65 DSS website www.dss.co.id/business/coal-mining.html viewed
million tonnes/yr; current capacity is 7.9 million tonnes/yr as of 4 June 2010
2009. Source: Harahap, R (2010) 
66 DSS (2010):10
67 DSS website www.dss.co.id/business/coal-mining.html viewed
23 APP (2009): 24
24 Greenpeace International (2008b) 4 June 2010
25 SMART (2010f) 68 DSS (2010): 16
26 SMART (2010h) 69 Investor Daily (2009)
27 GAR (2010):12 70 www.sinarmasmining.com
28 A PP (2009). APP does not formally exist as such. It is a loose 71 DSS (2010):14
group of Sinar Mas companies operating in the pulp & paper 72 Investor Daily (2009)
sector. PT Purinusa Ekapersada is the main controlling 73 Investor Daily (2009)
shareholder in APP’s group companies: PT Indah Kiat, PT Pindo 74 see www.sinarmasmining.com/ (accessed 27 July 2010)
Deli, PT Lontar Papyrus, and PT Pabrik Kertas Tjiwi Kimia: 75 Dharsono (2010)
PT Purinusa Ekapersada controls 52.7% of shares in PT Indah
Kiat. Source: Indah Kiat (2009):48; PT Purinusa Ekapersada 76 A PP Myths and Realities: http://appmnr.app.co.id/env_app-
controls 97.73% of shares in PT Pindo Deli. Source: PT Pindo Deli mr_tst/index.php?option=com_content&view=article&i
(2010):56; PT Purinusa Ekapersada controls PT Lontar Papyrus d=62%3Arumor-mill-2&catid=39%3Abiodiversity-and-
through PT Pindo Deli (see above), which owns 99.79% of shares conservation&Itemid=41&lang=
in PT Lontar Papyrus. Source: Lontar Papyrus (2010):33; PT 77 Dharsono (2010)
Purinusa Ekapersada controls 59.6% of shares in Tjiwi Kimia. 78 A PP China website: ‘Where Does APP’s Paper Comes From?
Source: Tjiwi Kimia (2010):53 Sustainability Aspects of Asian Paper.’ 18 December 2009
29 TÜV (2009) http://www.papercontract.com/?p=553
30 APP (2009) 79 Government of Indonesia (1990)
31 GAR (2010):12 80 See Greenpeace UK (2009)
81 S  ee Greenpeace UK (2009) Under Indonesian law, no significant
land development activities are permitted before a company
has obtained a valid Plantation Business Permit (IUP). One
requirement for obtaining an IUP is the completion and
approval of an Environmental Impact Assessment (AMDAL in
Indonesia). Source: Article 1 (1) within Plantation Act Nr 18
(2004).
According to Indonesian law, developing an oil palm plantation
without an EIA should result in any IUP that has been issued
being revoked. Source: Article 25 (5) within Plantation Act Nr
18 (2004)
To ensure that each company has an EIA before starting
to clear the land and plant oil palm, the West Kalimantan
Environmental Monitoring Office (Bapedalda) requires all
plantation companies to sign a statement, before the EIA is
processed and approved, confirming that no land operations
have commenced. Source: Personal communication (2009) with
Untad Darmawan, head of division of EIA in West Kalimantan
Bapedalda Office from March 2009.
82 SMART (2009)
83 SMART (2010a)
84 Dharsono (2010)
85 Dharsono (2010)
86 GAR (2010): 39
87 SMART (2010b)
88 SMART (2010b)
89 SMART (2010e)
90 SMART (2010)
91 See Greenpeace UK (2009)
92 GAR (2008a): 70
93 Simpur Hutan (2006)
94 WWF (2006)
95 Copy held by Greenpeace International
96 Government of Indonesia (1990)
97 Dharsono (2010)
98 Greenpeace International (2010b)
99 Meijaard et al (2004)
100 SMART (2010b)
101 Ministry of Justice, Notary Directoy, http://www.sisminbakum.
go.id/notaris/pub_notarisdata.php?kode_notaris=001202
accessed July 23 2010
102 GAR (2010): 69
103 See Greenpeace International (2010): 24-27
104 eg Deutsch (2010); Just Food (2010)
105 eg Just Food (2010)
106 Greenpeace International (2010c) 27
107 P rincipal banker to GAR and long-term loan to PT SMART.
Sources: GAR (2010) and 44; SMART (2010c): 59
108 P rinciple banker to GAR and banker to PT SMART. Sources: GAR
(2010): 44 and SMART (2010c): 34
109 Banker to PT SMART. Source: SMART (2010c): 34
110 Banker to PT SMART. Source: SMART (2010c): 34
111 Banker to PT SMART. Source: SMART (2010c): 34
112 Holds shares in GAR. Source: Thomson Reuters (2010b)
113 Holds shares in GAR. Source: Thomson Reuters (2010b)
114 Holds shares in GAR and Indah Kiat (APP company). Sources:
Thomson Reuters (2010b) and Thomson Reuters (2010a)
115 Holds shares in GAR and Indah Kiat (APP company). Sources:
Thomson Reuters (2010b) and Thomson Reuters (2010a)
116 Ethics Call Centre report form, available at: www.
asiapulppaper.com/portal/APP_Portal.nsf/Fraud?openform
117 eg WWF (2009a), WWF (2009b) and WWF et al (2009)
118 Government of Norway (2010)
credits 23
How Sinar Mas is expanding empires of destruction
Cover: Photos ©Beltrá/Greenpeace
Inside cover: Photos ©Greenpeace
Page 1 PR Week ‘Controversial palm oil firm Golden Agri-
Resources asks Bell Pottinger for help’ 28 April 2010
www.prweek.com/channel/ConsumerEntertainment/
article/999738/Controversial%20palm%20oil%20
firm%20Golden%20Agri-Resources%20asks%20
Bell%20Pottinger%20for%20help/
Guardian ‘How UK oil company Trafigura tried to cover
up African pollution disaster’ 16 September 2009
www.guardian.co.uk/world/2009/sep/16/trafigura-
african-pollution-disaster
Guardian ‘Trafigura fined 1m for exporting toxic
waste to Africa’ 23 July 2010 www.guardian.co.uk/
world/2010/jul/23/trafigura-dutch-fine-waste-export
Page 2 Organisational diagram: see Greenpeace (2010c) Sinar
Mas Group business and foundation values graphic: Eka
Tjipta Foundation (2008)
Document: GAR (2010)
Page 3 Documents (clockwise from top left): Sinar Mas group
website; APP (2009); DSS (2010); Banksinarmas.
com; AFP 2009 Annual Report; Confidential Sinar Mas
document, copy held by Greenpeace; SMART company
presentation 2008
APP letter: Greenbury (2010)
Photos ©Greenpeace
Page 4 Confidential document, copy held by Greenpeace
Page 5 Daily Observer ‘GOL Attracts US$1.6bn Agro
Investment’ 12 December 2009 www.liberianobserver.
com/node/2949
Page 6 Maps: see Greenpeace (2010c)
Page 7 Photos ©Beltrá/Greenpeace
Page 8 Photo ©Beltrá/Greenpeace
Page 9 Photo ©Beltrá/Greenpeace
Confidential document, copy held by Greenpeace
Photo ©Greenpeace
Page 10 Graphics: see Greenpeace (2010c)
Photo ©Greenpeace
Page 11 Graphics: see Greenpeace (2010c)
Photo ©Greenpeace
Page 12 Photo ©Greenpeace
Page 14 Map graphic, peat data: confidential Sinar Mas
document, copy held by Greenpeace
Page 15 Photos ©Greenpeace
Page 16 Orang-utan photos ©films4.org/forests
PT ALM photos ©Greenpeace
Page 17 Photos ©Greenpeace
Page 18 Company logos
Page 19 Document: Eka Tjipta Foundation (2008)
Page 21 Photo ©Beltrá/Greenpeace
Greenpeace is an independent global July 2010
campaigning organisation that acts
to change attitudes and behaviour, Published by
to protect and conserve the environment Greenpeace International
and to promote peace. Ottho Heldringstraat 5
1066 AZ Amsterdam
Greenpeace is committed to stopping The Netherlands
climate change.
enquiries@int.greenpeace.org
We campaign to protect the world’s
remaining ancient forests and the plants, www.greenpeace.org/forests
animals and peoples that depend on them.

We investigate, expose and confront

the trade in products causing forest
destruction and climate change.

We challenge governments and industry

to end their role in forest destruction
and climate change.

We support the rights of forest peoples.